At a September investors’ forum in Manila, Philippine President Ferdinand Marcos Jr. promoted the Luzon Economic Corridor, a key piece of the U.S.-led Pax Silica pact to build an AI and semiconductor supply chain outside China. Outside the hotel, protesters chanted “No to Pax Silica,” and police used riot shields and batons against the crowd. Activists said at least 27 protesters were injured and five arrested; police reported minor injuries to 16 personnel.
The proposed high-tech manufacturing hub would sit inside New Clark City, part of a former U.S. military complex that Indigenous Aeta communities consider ancestral land. The Bases Conversion and Development Authority says the facility would be green and mainly solar powered, citing the region’s abundant sunshine. But opponents question whether solar can reliably power a plant that would consume roughly 26.3 terawatt-hours a year—nearly as much as the entire Philippine service sector used in 2024.
Water is another flashpoint. Officials say the hub would draw 16 million to 24 million gallons a day from an impounding dam, with potential to scale up. Critics note the dry season from December to May is exactly when farmers need irrigation. The government has also not detailed how it will manage waste from mineral processing, and activists warn the project could leave communities with contaminated land and depleted resources.
The government frames Pax Silica as a chance for the Philippines to become a global technology player, and U.S. officials say the project will bring power, water, and benefits. But scientists and Indigenous groups see it as a land and resource grab tied to American AI ambitions, with the Philippines bearing most of the risk. A final agreement is expected to be signed in November, though officials have offered few specifics about the plan's details.